Homeowners Choice Prices Public Offering of $35 Million of Senior Notes Due 2020

Published 4:21 PM ET Thu, 10 Jan 2013
Globe Newswire

TAMPA, Fla., Jan. 10, 2013 (GLOBE NEWSWIRE) -- Homeowners Choice, Inc. (NYSE:HCI), a Florida-based insurance holding company, today announced that it priced an underwritten public offering of $35 million aggregate principal amount of 8.00% Senior Notes due 2020. The notes will mature on January 30, 2020, and may be redeemed in whole or in part at any time or from time to time at the company's option on or after January 30, 2016, at a redemption price equal to the principal amount redeemed plus accrued and unpaid interest. The notes will bear interest at a rate of 8.00% per year payable quarterly on January 30, April 30, July 30 and October 30 of each year, beginning April 30, 2013. The company has granted the underwriters an option to purchase up to an additional $5.25 million aggregate principal amount of notes to cover over-allotments, if any.

Homeowners Choice intends to use the net proceeds from this offering for working capital and general corporate purposes.

Sterne, Agee & Leach, Inc. is acting as sole book-running manager for the offering. Wunderlich Securities, Inc. and Incapital LLC are serving as co-lead managers and JMP Securities LLC, Gilford Securities Incorporated, J.J.B. Hilliard, W.L. Lyons, LLC and Maxim Group LLC are acting as co-managers for the offering. The offering is expected to close on January 17, 2013, subject to customary closing conditions.

The offering is being made pursuant to an effective shelf registration statement that has been filed with the Securities and Exchange Commission. A preliminary prospectus supplement and the accompanying base prospectus related to the offering have been filed with the Securities and Exchange Commission and are available on the SEC's website at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying base prospectus and, when available, the final prospectus supplement and the accompanying base prospectus may also be obtained from Sterne, Agee & Leach, Inc., 277 Park Avenue, 24th Floor, New York, NY 10172, by calling (212) 338-4708, sending a request via facsimile at (205) 414-6373 or sending an email to syndicate@sterneagee.com. Investors are advised to carefully consider the risks relating to the company's business and the notes before investing in the notes. The preliminary and final prospectus supplement and the accompanying base prospectus contain this and other information about the company and should be carefully read before investing.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Notes in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Homeowners Choice

Homeowners Choice, Inc. is a Florida-based insurance holding company headquartered in Tampa. Through its subsidiary corporations, Homeowners Choice provides property and casualty homeowners' insurance, condominium owners' insurance and tenants' insurance. The company's common shares trade on the New York Stock Exchange under the ticker symbol "HCI" and are included in the Russell 2000 Index. Its Series A, cumulative redeemable preferred shares trade on the NASDAQ Capital Market under the ticker symbol "HCIIP." More information about Homeowners Choice is available at www.hcpci.com.